5. Hager holds 40 percent of the outstanding shares of Jenkins and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $12,000 per year. For 2019, Jenkins reported earnings of $30,000 and pays cash dividends of $90,000. During that year, Jenkins acquired inventory for $45,000, which it then sold to Hager for $62,000. At the end of 2019, Hager continued to hold merchandise with a transfer price of $18,600. Required: 1) Compute the deferral of inventory gain at the end of the year. 2) What equity in Investee Income should Hager report for 2019? (15 Points)